Sunday, January 27, 2019

GeM - Government e-Market Place. An Unknown treasure to traders and manufacturers !!

Are you into business ? Eager to supply your products and services to Government ??

A must read article useful to General public.

Introduction :
If someone ask us, which is the big e commerce company in India, Immediately we will say Flipkart or Amazon. But there is another e commerce Organization which is growing in fast track mode. It is our Central Governments “ GeM “ - Government e-Market Place From August 2016 to September 2018 over 8 lakhs transactions recorded in above portal with turnover worth of Rs.12,239 crores.

Back Ground :
Like a Private Organization, Government Offices also need right from pencil to computers, to run their office. Earlier all the Central Government purchases are handled by DGS&D – Directorate General of Supplies & Disposals. This Department primarily aimed to centralize the Government Purchases and distributing needy items to all Central Government Offices. DGS&D had 4 regional offices with 1200 employees. Approx. 20% of GDP spent for these kind of purchases hence as we know, there was huge mal practices, favoritism, delay in payments, no transparency etc., Hence Central Government wanted to change entire methodology during the year 2016.

What is GeM ?
To bring transparency and ease of doing business, Central Government introduced GeM in which interested suppliers can register themselves and offer their products and price in website. Like other e commerce companies, GeM also an e commerce organization registered under Companies Act,2013 under section 8 and running as a non for profit organization.

How GeM works ?
Let us take example of Computers. Earlier DGS&D used to open public Tender in which suppliers used to quote their price and lowest bid will be selected. Upon award of supply contract, supplier has to fulfill his contract obligations and then payment processed to them. Under new GeM system simply purchase officials can browse in GeM portal. Supplier wise details such as price, duration required for supply, product specifications everything available in finger tips. Orders will be placed on line and suppliers will come to know the sanction of orders in their GeM Login dashboard itself. Vigilance or other Government Audit authorities can simply verify who was given supply order, on what price, whether it is lowest etc then and there.

Not only supply,  service too !!
Apart from suppliers of products, service providers can also register in GeM. For example, Cab services. Government departments needs cars and other transport vehicles for their departmental use. Earlier whatever price demanded by Cab Operators was paid by Government. But now huge number of cab operators are registered with GeM and now cars and vehicles can be hired for lowest cost.

Benefits to Start Up companies with innovative new products and services :
Over 800 start up companies already been registered in GeM for their products, services and softwares etc., New product and services value upto Rs.50,000/- can be registered immediately, but new products and services over 50K value shall be allowed to be registered depending upon its requirement. Hence above 50K value new supplies and services needs to supplied to a needy department on test basis. If it is useful to them then that start up will be allowed to be registered with GeM.

Transparency and quick payments :
GeM completely removes face to face follow up for supply and payment processing etc., Being procurement and purchase automated, GeM enables payments too automated. Without bribe and undue advantages, payments also processed under electronic method.
Upto 50K value of purchase, officials can select any supplier. But value above 50K, who ever offers lowest price only will be selected. Also Purchase officials can initiate e-bid as per old procedure and call for quick quotes.

What is beneficial to Government ?
GeM was started with approx. 100 products during Aug 2016  and handled  procurements to the tune of Rs.420 crores within six months. Next one year it has crossed Rs.5000 crores worth purchases. Current Financial Year target is Rs.22,000 crores. At present over 175000 suppliers and service providers are registered with GeM under 1400 heads of products and services. Apart from Central Government, over 170 PSU ( Public Sector Undertakings ) also using GeM for their procurements and MSME supply companies are much benefited in GeM concept.

Way forward :
This market is worth approx. 4 lakhs crores. Now only 36 services are registered and 200 more services needs to be added. Also all the State Government procurements too will brought under GeM shortly.

If you are a manufacturer or service provider and not registered with GeM, why are you waiting for !! Enroll today with GeM and be a prestigious supplier to Government.

Tuesday, January 22, 2019


Dear friends

As you are well aware that Passport services are handled by Tata Consultancy Services Limited (TCS)  Ltd and no room for bribe and service also almost like Corporate Company.

In another major move, understand from reliable sources that Income Tax return processing and refund release management too will be handled by TCS in near future.

Let us not oppose it saying privatization of Government duty and let us welcome the move since assessee is going to be benefited with swift service.

Even though TCS renders Income tax filing service thro' below portal it has not any authority to process returns and refunds. Let the new era in Direct tax begins

Difference between Advance Authorisation and Duty Free Import Authorisation

Advance Authorisation :

Application Form ANF- 4A
Fuel also allowed
Eligible for SION/ Non SION goods
Min. Value addition –15%
Scheme/ inputs never transferable

Duty Free Import Authorisation

Form ANF- 4G
Fuel not eligible to be imported free
Only for SION products
Min. Value addition – 20%
Scheme/ inputs Both transferable after fulfilling export obligation

SION = Standard input and Output Norms

Monday, January 14, 2019


What is FTP or Foreign Trade Policy ?

The F.T.P is published in 3 parts
(i) The Policy Document.
(ii) Hand Book Of Procedures
(iii) ITC (H.S) Classification.
The first part contains the basic policy in a broad sense with objectives, strategies to achieve those objectives and a brief review of the last policy.
The second part is handbook of procedures which contains the detailed procedures for implementing the policy.
The third part is ITC (HS) classification of goods of import and export.
The current policy is called FTP 2015-2020

What is ITC (H.S) classification ?

ITC stands for India Trade Classification and H.S stands for harmonized
system. In other words, it is India Trade Classification (based on) harmonized system of coding adopted in India for goods imported or exported through customs.
Customs department uses the coding system for goods. In India we use eight digit system of coding for goods.All goods for international trade are given section wise. There are 21 sections.For example, Section 1 contains Animals & Animal products; Section 2 vegetable products. These sections are further divided into chapters. These chapters contain goods with H.S. codes, description, export/import policy for the goods and type of restriction. Separate schedules are given for imported and export goods. Schedule 1 contains the lists of imported goods and schedule 2 has export goods. Status of goods will be denoted by specific alphabet in the schedules. As per the policy of the government, goods are categorized as follows :

1. Free Goods: Alphabet ‘F’ is used for this. These goods are allowed to be imported/ exported as the case may be freely without any license or authorization from DGFT.
2. Prohibited Goods: (P is used) these can not be imported at all.
3. Restricted Goods: (R): These ‘R’ category goods can be imported only with license / authorization.
4. State Trading Goods (S or STE) : These goods can be exported or imported only by or through state trading enterprises. (STEs) such as MMTC/ Indian Oil Corporation etc. If an importer or exporter still wants to deal directly, he has to get permission/authorization from DGFT.

Friday, January 11, 2019


Distinction between Sec 13 & Sec 23

“Pilferage of the goods” VS  “Loss of goods”

Pilferage of the goods ( Sec 13 )

a. MEANING : Pilfer means to steal, especially in small quantities
b.DUTY :Shall not be liable to pay duty
c.RESTORATION : If Goods are restored after pilferage, liable
to pay duty
d.WAREHOUSING : Not apply to this section
e.ONUS TO PROVE : Does not lie on importer as it comes during
examination of officer
f.TIME OF OCCURRENCE : After unloading but before order for clearance

Loss of goods ( Sec 23 )
a.MEANING : Words lost or destroyed refers to “total loss” of goods
b.DUTY : If already paid, it will be remitted
c.RESTORATION : Restoration is not possible
d.WAREHOUSING : Apply to this section
e.ONUS TO PROVE : Has to prove
f.TIME OF OCCURRENCE Before clearance for home consumption


A conveyance / vessel may reach a port but may not unload the goods at that port. It may halt at the port for any other purpose such as repairs, replenishment of supplies, refuelling etc. Once the purpose is over, it may start sailing to the destination port. In this case two ports are involved; 1) the halting port (known as transit port) and 2) the destination port (called as port of clearance).
Such temporary stay at a port other than a destination port is called Transit.
In transit, the goods remain in the same vessel and consequently reach the port of clearance.


In transhipment, however, the vessel after reaching an intermediate port, transfers the goods to another vessel and the second vessel into which the goods are transferred (loaded) from the 1st vessel, carries the goods to the destination port.

Thursday, January 10, 2019


a) preparation of various kinds of bills of entry, bills of export, shipping bills, and other clearance documents;
(b) arrival entry and clearance of vessels;
(c) tariff classification and rates of duty;
(d) determination of value of imported and export goods;
(e) conversion of currency;
(f) nature and description of documents to be filed with various kinds of bills of entry, shipping bills and other clearance documents;
(g) procedure for assessment and payment of duty including refund of duty paid;
(h) examination of goods at Customs Stations;
(i) prohibitions on import and export;
(j) bonding procedure and clearance from bond;
(k) re-importation and conditions for free re-entry;
(l) drawback and export promotion schemes including the Special Economic Zone scheme;
(m) offences under the Act;
(n) provisions of the allied Acts including the Central Goods and Services Act, 2017 (12 of 2017) and section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Indian Explosives Act, 1884 (4 of 1884), the Destructive Insects and Pests Act 1914 (2 of 1914), the Dangerous Drugs Act, 1930 (2 of 1930), the Drugs and Cosmetics Act, 1940 (23 of 1940), the Central Excise Act, 1944 (1 of 1944), the Copy Right Act, 1957 (14 of 1957), the Trade and Merchandise Marks Act 1958 (43 of 1958), the Arms Act 1959 (54 of 1959), the Patents Act, 1970 (39 of 1970), the Narcotics Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the Environment (Protection) Act, 1986 (29 of 1986), the Foreign Trade (Development and Regulations) Act, 1992 (22 of 1992), the Foreign Exchange Management Act, 1999 (42 of 1999), the Design Act, 2000 (16 of 2000) and the Food Safety and Standard Act, 2006 (No. 34 of 2006) and other laws for the time being in force applicable to EXIM trade and the rules and regulations made under these Acts in so far as they are relevant to clearance of goods through Customs;
(o) provisions of the Prevention of Corruption Act, 1988 (49 of 1998);
(p) procedure for appeal and revision applications under the Act; and
(q) online filing of electronic bills of entry and shipping bills vide the Indian Customs and Central Excise Electronic Commerce or Electronic data interchange gateway (ICEGATE) and Indian Customs Electronic data Interchange System (ICES).
(r) knowledge of regulations, rules, notifications, etc. under the Customs Act and other Allied Acts

Monday, January 7, 2019


SECTION 122  Adjudication of confiscations and penalties : 

(a) Without limit - Principal Commissioner of Customs or Commissioner of Customs or a Joint Commissioner of Customs


(b) as per Notification No. 50/2018-Customs (N.T.) 8th June 2018 for other officers as follows ;

Sl. No.

Customs Officer

Value of goods liable for confiscation





Assistant Commissioner of Customs or Deputy Commissioner of Customs

Above rupees one lakh but not exceeding rupees ten lakhs


A Gazetted Officer ( Superintendent ) of Customs lower in rank than an Assistant Commissioner of Customs or Deputy Commissioner of Customs 

Not exceeding rupees one lakh


As per Sec 76 of Customs Act, following cases no drawback shall be allowed ;

1. When Market-price of export goods is less than the amount of drawback amount
2.When the drawback amount is less than fifty rupees.
3.If the Central Government is of the opinion that export goods likely to be smuggled back into India 

Saturday, January 5, 2019

New Cheque Bounce Provisions- 143A & 148

New Cheque Bounce Provisions- 143A & 148

The Negotiable Instruments (Amendment) Bill was put forth before the Lok Sabha by the Finance Minister on January 2, 2018. It received the assent of the President and was notified in the Official Gazette on 02.08.2018 to become an Act called the Negotiable Instruments (Amendment) Act, 2018 (No. 20 of 2018).

AIM - The Amendment Act aims to meet the following:

Reducing the undue delay in the cheque dishonor cases and,

Provision for payment of interim compensation to the complainants.

OBJECT - Ease of doing business is the main object of the Amendment.
The Statement of Objects and Reasons of the Negotiable Instruments (Amendment) Bill is produced herein below:
"The Central Government has been receiving several representations from the  public including trading community relating to pendency ofcheque dishonour cases. This is because of delay tactics of unscrupulous drawers of dishonoured cheques due to easy filing of appeals and obtaining stay on   proceedings"


Two new Sections i.e 143A and 148 have been proposed to be inserted under the Negotiable Instruments Act, 1881 via the Amendment Act:
1. Section 143A- It empowers the Court to order the drawer of the cheque to pay Interim Compensation to the complainant:

In case of a summary trial or a summons case, where the drawer pleads not guilty to the allegations made in the complaint, and

In any other case, upon framing of thecharges.

Quantum of Compensation - The compensation amount shall not exceed 20% of the amount of the Cheque.
On Acquittal - In case where the drawer is acquitted then the payee may be directed to refund the entire amount of interim compensation along with the RBI's Prevailing interest rate, to the drawer.
Time Frame - The interim compensation shall be paid within 60 days from the date of the order by the court which may be further extended by an additional period of 30 days, subject to the sufficient reasons being shown.
2. Section 148 – It empowers the Appellate Court to order payment pending the appeal against conviction under Section 138 of the Negotiable Instruments Act.
The Appellate Court may order the appellant to deposit an amount which shall be a minimum of 20% of the fine or compensation awarded by the trial Court.
This amount shall be in addition to the amount already paid by the appellant under Section 143A.
This deposit may be released by an order for payment to the complainant at anytime during the pendency of the appeal.
On Acquittal - In case of the appellant being acquitted, the court shall direct the complainant to refund the entire deposit amount along with the RBI's prevailing interest rate to the appellant.
Time Frame - The deposit amount shall be paid within 60 days from the date of the order by the court which may be further extended by an additional period of 30 days, subject to the sufficient reasons being shown.


The Amendment Act comes across as a relief for the Payee of the Cheque, who has to spend a significant amount of time and energy in the court to recover the money due to him in a Cheque bounce case.
It is pertinent to note that of late the recovery provisions have been strengthened so that business community is relieved and safeguarded from undue hardship.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Note: Reproduced article from above source


Friday, January 4, 2019


Please refer TV channel Breaking News today that India has stopped printing ₹2,000 currency notes. The reason may be  The Centre suspects the high-denomination banknote is being used for hoarding, tax-evasion and money laundering.

The share of the ₹2,000 note in the total currency in circulation has come down to 37.3% in March 2018 from 50.2% in March 2017, but the government maintains that there are no plans to withdraw it.

Since Parliamentary Elections are fast approaching and recalling defeats in recent assembly elections I hope Modi Government will not again take extreme step of Rs.2000 currency demonetization.

With rgds
Rajesh A



Implementation of e sanchit for exports at Chennai - clarifications

IGST Export Refunds–resolution of errors